T-Mobile, Verizon, and AT&T will pay a combined $10.2 million in a settlement with US states that alleged the carriers falsely advertised wireless plans as "unlimited" and phones as "free." The deal was announced yesterday by New York Attorney General Letitia James.
"A multistate investigation found that the companies made false claims in advertisements in New York and across the nation, including misrepresentations about 'unlimited' data plans that were in fact limited and had reduced quality and speed after a certain limit was reached by the user," the announcement said.
T-Mobile and Verizon agreed to pay $4.1 million each while AT&T agreed to pay a little over $2 million. The settlement includes AT&T subsidiary Cricket Wireless and Verizon subsidiary TracFone.
The settlement involves 49 of the 50 US states (Florida did not participate) and the District of Columbia. The states' investigation found that the three major carriers "made several misleading claims in their advertising, including misrepresenting 'unlimited' data plans that were actually limited, offering 'free' phones that came at a cost, and making false promises about switching to different wireless carrier plans.
Wew lad 
That's over $200k per state! It can even be used to cover lawyers fees and discovery costs in a case that took 9 years in court. Yuge government win here, folks!
The three carriers agreed that all advertisements to consumers must be "truthful, accurate and non-misleading." They also agreed to the following changes, the NY attorney general's office said:
"Unlimited" mobile data plans can only be marketed if there are no limits on the quantity of data allowed during a billing cycle.
Offers to pay for consumers to switch to a different wireless carrier must clearly disclose how much a consumer will be paid, how consumers will be paid, when consumers can expect payment, and any additional requirements consumers have to meet to get paid.
Offers of "free" wireless devices or services must clearly state everything a consumer must do to receive the "free" devices or services.
Offers to lease wireless devices must clearly state that the consumer will be entering into a lease agreement.
All "savings" claims must have a reasonable basis. If a wireless carrier claims that consumers will save using its services compared to another wireless carrier, the claim must be based on similar goods or services or differences must be clearly explained to the consumer.
I bet that will learn them!
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Verison did a lot of market research specifically about whether or not people on unlimited data plans knew they were being rate limited.
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people have been talking about this for forever
ISP's do it as well
I'm surprised (or not really) that it took so long for this to happen.
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